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Cautious optimism as AACo commits to meatworks

Sunbuild did the original civil works for the AACo meatworks near Darwin

Matt Brann

Pastoralists in the Northern Territory have cautiously welcomed the news that the Australian Agricultural Company (AACo) will build a $91 million abattoir near Darwin.

Chair of AACo, Don McGauchie, says the board has given its full and final approval for the meatworks, which he says will be up and running by the second half of next year and capable of processing over 200,000 head a year.

Northern pastoralists have been hearing promises of an AACo meatworks since 2010, and are hopeful it will finally happen.

"Obviously it's a business risk for those that have money invested in it, but for the industry as a whole I can't see the negative in it, not a negative at all," said one pastoralist to ABC Rural.

"I just think it'll give us diversity of markets and just another option for our cull-for-age cows," said another.

"I think it will have a positive impact on the game for pastoralists, particularly in terms of having an outlet for animals that aren't suitable for the live export trade." said another

"To go through a meatworks in Darwin will decrease the freight and that is certainly going to help our bottom line and it's also going to help animal welfare," said one pastoralist.

When AACo first flagged a Darwin meatworks in 2010, then CEO David Farley said it would cost around $50 million and "we'd like to have it up and running in the first half of 2012".

Speaking at yesterday's "transitional" annual general meeting, Don McGauchie said the meatworks would now cost the company $91 million and be operational by the second half of 2014.

North Queensland cattle producers welcome the announcement that the AACo abattoir outside Darwin has been given the final tick of approval.

Spokesman for North Beef, Rob Atkinson, says his alliance welcomes any competition in the market for its cattle.

"I think it is great news for the beef industry. The more players we have got in the processing sector, the better. Competition is healthy," he said.

"The north needs somewhere to process older cows and bulls and that Darwin works will service a very big catchment in the NT, WA and Queensland."

Mr Atkinson says North Beef is still keen to see another abattoir in the north or west of Queensland.

"While Cloncurry has certainly been considered, it's by no means the only site that is viable.

"We think right across to Charters Towers, along the Flinders highway along the tick line, that an investor wants to back North Beef will support."

Mr Atkinson sees opportunities in killing cattle, cutting them into sides or quarters, but not boning them and shipping out the carcases via Townsville to processing works in Asia, where costs are lower, as a real possibility.